Swiss Franc Technical Forecast: USD/CHF Bulls Eye Resistance

Swiss Franc Technical Forecast: USD/CHF Weekly Trade Levels

USD/CHF poised to mark third consecutive weekly advance- resistance in view
USD/CHF monthly opening-range preserved head of NFP- breakout imminent
Resistance 9144, 9224/41 (key), 9310- Support 9007, 8957 (key), 8825

The USD/CHF breakout is approaching initial resistance hurdles early in the month with the January opening-range set just below. Battle lines drawn on the USD/CHF weekly technical chart into the star of the year.

Review my latest Weekly Strategy Webinar for an in-depth breakdown of this USD/CHF setup and more. Join live on Monday’s at 8:30am EST.

Swiss Franc Price Chart – USD/CHF Weekly

Chart Prepared by Michael Boutros, Sr. Technical Strategist; USD/CHF on TradingView

Technical Outlook: In last month’s Swiss Franc Technical Forecast we noted that USD/CHF had rebounded off confluent uptrend support and that, “losses should be limited to 52-week moving average (currently ~8783) IF price is heading higher on this stretch with a close above 89 needed to fuel the next leg of the advance.” USD/CHF broke higher that week with the rally extending nearly 4.7% off the December lows into the start of the month.

The bulls are poised to mark a third consecutive weekly advance with USD/CHF now approaching lateral resistance at the objective 2024 high-close at 9144. A more significant technical consideration is eyed just higher at 9224/41- a region defined by the 2024 swing high and the 2023 yearly open. Note that this zone converges on the medina-line over the next few weeks and a breach / close above would be needed to fuel the next major leg of the advance towards the 100% extension at 9310 and the 2021 high-week close / 2017 swing low 61.8% retracement at 9412/54- look for a larger reaction there IF reached.

The weekly / monthly range low rests at 9007 with initial support seen at the November swing high at 8957. Ultimately a break / close below the lower parallel (blue) would be needed to suggest a more significant high is in place / invalidate the September uptrend. Subsequent support seen with the 52-week moving average (currently ~8825) and the 2021 swing low at 8758- both levels of interest for possible downside exhaustion / price inflection IF reached.

Bottom line: The USD/CHF rally is approaching initial resistance just higher- risk for possible price inflection. From a trading standpoint, losses should be limited to the lower parallel IF price is heading higher on this stretch with a close above 9144 needed to fuel the next major leg of the advance towards critical resistance at 9224/41.

Keep in mind the monthly opening-range is preserved heading into the close of the week with the U.S. Non-Farm Payrolls on tap Friday. Stay nimble into the release and watch the weekly close for guidance here. Review my latest Swiss Franc Short-term Outlook for a closer look at the near-term USD/CHF technical trade levels.

USD/CHF Key Economic Data Releases

Economic Calendar - latest economic developments and upcoming event risk.

Active Weekly Technical Charts

--- Written by Michael Boutros, Sr Technical Strategist

Follow Michael on X @MBForex

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.